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SYDNEY — Qantas Airways scrapped its attempt to acquire local charter operator Alliance Aviation Services following opposition from Australia’s competition regulator.
Qantas
QAN,
on Thursday said it agreed to terminate the carriers’ May 2022 agreement under which it would acquire its smaller rival in an all-stock deal that valued Alliance
AQZ,
at about 763.5 million Australian dollars (US$483.9 million) at the time.
In April 2023, the Australian Competition and Consumer Commission said that both Qantas and Alliance are key suppliers to resources companies who need to transport so-called fly-in, fly-out workers in Western Australia and Queensland states. The tie-up would significantly reduce competition, the ACCC said.
“Both companies acknowledge that there is no reasonable path forward for the deal at present,” Qantas said on Thursday.
Qantas said that it will continue to serve the resources sector through existing charter operations. It said it has about 27% of Australia’s total charter market.
Australia’s national carrier added that it will exercise options for four additional aircraft under its existing long-term charter agreement with Alliance, bringing the total of E190 craft operated by Alliance for Qantas to 26 from April 2024. Qantas has four more options under the agreement.
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